Welcome!

Microsoft Cloud Authors: Liz McMillan, Pat Romanski, John Basso, Elizabeth White, Mihai Corbuleac

News Feed Item

Aveda Transportation and Energy Services Announces Record Revenue for the Third Quarter of 2012

CALGARY, ALBERTA -- (Marketwire) -- 11/29/12 -- Aveda Transportation and Energy Services Inc. ("Aveda" or the "Company") (TSX VENTURE:AVE), a leading provider of oilfield hauling services and equipment rentals to the energy industry, today announced record revenue for the three and nine months ended September 30, 2012.

2012 BUSINESS HIGHLIGHTS


--  Revenue for the nine months ended September 30, 2012 grew by $7.7
    million to $60.3 million compared with revenue of $52.6 million for the
    same period in 2011; 
--  Generated net loss for the nine months ended September 30, 2012 of $0.8
    million, as compared to net income of $2.3 million for the same period
    in 2011; 
--  Generated Adjusted EBITDA(1) for the nine months ended September 30,
    2012 of $7.2 million, a decrease of $1.5 million compared with Adjusted
    EBITDA(1) of $8.7 million for the same period in 2011; 
--  Expanded equipment base by acquiring $22.5 million of net additional
    equipment and leaseholds during the first nine months of 2012; 
--  Commenced operations in new branches in Pleasanton, TX and Midland, TX.
    The Company signed a new lease on a new Pennsylvania facility that will
    see its operations move from New Columbia to Williamsport, PA in early
    2013; 
--  Raised $8.0 million ($7.2 million net of financing costs) in new equity
    financing, and increased its existing credit facility to $50 million
    from $35 million; 
--  Acquired selected assets of 1st Rate Energy Services Inc. and a private
    company called Complete Energy Services Inc. together referred to as
    "Complete" for approximately $7.5 million. As a result of the
    acquisition the Company increased its rental fleet by 270 pieces of
    equipment and established operation in Sylvan Lake, AB ; 
--  The Company elected to close its Crossfield, AB rental operation and
    combine it with the newly acquired Sylvan Lake, AB operation; 
--  Following consecutive periods of poor performance, the Company elected
    to close its Melita, MB and Grande Prairie, AB branches and allocated
    its fleet assets amongst other branches; and 
--  Relocated Nisku, AB branch to Leduc, AB and added rig moving to the
    operation along with service work. 

Note:

(1) See MD&A Section 8: Non-IFRS Measure

"Despite current market pressures, we have demonstrated that our customers value our services highly which allowed us to continue to grow our operations" said David Werklund, Executive Chairman of Aveda "We continue to build on our strength and lay the foundation for future growth, to become a highly profitable transportation and rentals company to serve the energy industry."

The Company's consolidated financial statements and Management's Discussion and Analysis are available on the Company's website at www.avedaenergy.com or the SEDAR website at www.sedar.com.

Financial Overview


(in thousands, except                                                       
 per share and ratio                                                        
 amounts)                                                                   
----------------------                                                      
                                                                            
                 Nine      Nine                 Three     Three             
               Months    Months                Months    Months             
                ended     Ended                 Ended     Ended             
            September September    % Change September September    % Change 
             30, 2012  30, 2011 2011 - 2012  30, 2012  30, 2011 2010 - 2011 
            ----------------------------------------------------------------
Revenue        60,316    52,607        14.7%   19,936    18,106        10.1%
Gross                                                                       
 profit(5)     10,596    12,857       -17.6%    3,492     4,557       -23.4%
Gross margin     17.6%     24.4%      -28.1%     17.5%     25.2%      -30.4%
                                                                            
Adjusted                                                                    
 EBITDA(1)      7,208     8,677       -16.9%    2,863     2,890        -0.9%
Adjusted                                                                    
 EBITDA(1)                                                                  
 as a                                                                       
 percentage                                                                 
 of revenue      12.0%     16.5%      -27.5%     14.4%     16.0%      -10.0%
                                                                            
Net income                                                                  
 (loss)          (761)    2,263      -133.6%     (431)    1,676      -125.7%
Net income                                                                  
 (loss) as a                                                                
 percentage                                                                 
 of revenue      -1.3%      4.3%     -129.3%     -2.2%      9.3%     -123.4%
                                                                            
Adjusted                                                                    
 EBITDA per                                                                 
 share(1,2)      0.86      1.52       -43.4%     0.29      0.50       -42.0%
                                                                            
Earnings per                                                                
 share -                                                                    
 basic and                                                                  
 diluted(2)     (0.09)     0.40      -122.5%    (0.04)     0.29      -113.8%
                                                                            
Current                                                                     
 ratio           2.94      0.65       352.1%     2.94      0.65       352.1%
                                                                            
Debt to                                                                     
 equity                                                                     
 ratio(3)        1.53      1.43         6.3%     1.53      1.43         6.3%
                                                                            
Debt to                                                                     
 EBITDA                                                                     
 ratio(3, 4)     3.76      1.74       116.3%     3.76      1.74       116.3%
                                                                            
Net capital                                                                 
 assets                                 Not                             Not 
 addition      22,448        12  Meaningful    11,908        (1) Meaningful 
                                                                            
Notes:                                                                      
(1)  This News Release contains the term Adjusted EBITDA. Adjusted EBITDA as
     presented does not have any standardized meaning prescribed by         
     international financial reporting standards (IFRS) and therefore it may
     not be comparable with the calculation of similar measures for other   
     entities. Management uses Adjusted EBITDA to analyze the operating     
     performance of the business. Adjusted EBITDA as presented is not       
     intended to represent cash provided by operating activities, net       
     earnings or other measures of financial performance calculated in      
     accordance with IFRS. It is defined as earnings before interest, taxes,
     depreciation and amortization excluding foreign exchange gains or      
     losses which are primarily related to the US dollar activities of the  
     Company and can vary significantly depending on exchange rate          
     fluctuations, which are beyond the control of the Company, and write   
     downs of intangible assets, goodwill impairment, financing costs, gains
     or losses on disposal of assets, stock based compensation, fees and    
     expenses on settlement of debt and losses on extinguishment of debt.   
(2)  2011 Per share amounts calculated to take into consideration the       
     Company's 30:1 share consolidation which took place on November 28,    
     2011 as if the share consolidation had been in effect throughout 2011. 
(3)  Debt includes, revolving credit facility, loans and borrowings,        
     obligations under finance lease and convertible debenture as per their 
     carrying amounts on the balance sheet.                                 
(4)  Nine and three months ended September 30 debt to EBITDA ratio          
     calculated using Adjusted EBITDA for the trailing 12 months.           
(5)  Gross profit calculated as revenue less direct operating expense.      

Outlook

The Company earns revenue primarily by providing specialized transportation services to companies engaged in drilling for exploration, development and production of petroleum resources. Demand for the Company's transportation services is therefore linked to the economic conditions of the energy industry and the general level of activity in the exploration, development and production of petroleum resources in Western Canada and in the US. Drilling activity in the WCSB and in the US has in recent history been affected by amongst other things, low natural gas prices and higher than normal natural gas inventories in storage caused by many factors including reduced demand for commodities as a consequence of a global recession and the temporary oversupply of natural gas caused by the fast development of shale gas resources in the US.

Countering these factors is a strong price for oil, which has allowed oil-focused regions to experience increasing rig counts. Two of Aveda's newest branches are benefitting from such increases in Texas, while other US branches have been successful in maintaining revenues and margins despite reduced rig-counts in gas-focused regions such as the Dallas-Ft. Worth basin and the Utica and Marcellus Shale.

In the WCSB, although up to July 2012 rig counts were higher than 2011, levels of activity failed to ramp up(1) to the expected levels in Q3 due mainly to rainy weather conditions. A return to higher activity levels is expected in Q4 as oil and gas companies increase drilling operations with the arrival of the cold weather and the use of their remaining drilling budgets, although it is uncertain if rig counts will return to 2011 levels for the remaining of the year.

Opportunities for expansion and growth continue to appear strongest in the US. According to the Baker Hughes Rig Count(2), drilling activity in the Eagleford and Permian basins has increased on average 30.8% year over year. This has allowed Aveda to grow significantly in these areas, with the opening of two new branches (Pleasanton and Midland) in 2012. The Mineral Wells branch is expected to maintain revenues by acquiring new customers in higher activity areas, to compensate for reduced activity in the Dallas/Ft. Worth gas basin where it operates. Similarly, Pennsylvania has experienced a decline of 30% in active rigs due to the predominance of gas plays in the region, but Aveda's local branch has been able to maintain equipment utilization due to excellent customer relationships and recognized superior operational efficiencies compared to competitors. It is expected that rig counts will continue the downward trend in Pennsylvania gas plays, however management believes the decline may be partially offset by the relocation of rigs to oil plays further west in the state.

The North American economy faces several macro-economic uncertainties, such as, the US fiscal cliff related to the Budget Control Act, the on-going European debt crisis, and the impact of the economic slowdown in China. It is not clear at this time what impact, if any, these uncertainties will have on the North American oil and gas industry and conversely on the operations of the Company. The Company is monitoring these macro-economic issues through feedback from its customers and will adjust its operations as necessary.

(1) June Warren Nickels Rig Locator, accessed on October 15, 2012, at www.riglocator.ca

(2) Baker Hughes Rig Count, accessed on October 15, 2012, http://investor.shareholder.com/bhi/rig_counts/rc_index.cfm

About Aveda Transportation and Energy Services

Aveda provides specialized transportation of products, materials, supplies and equipment required for the exploration, development and production of petroleum resources in the Western Canadian Sedimentary Basin and in the United States of America principally in and around the states of Texas and Pennsylvania. Transportation services include both the equipment necessary to move the load as well as a trained, professional driver capable of securing, moving and manipulating the load at its origin and destination. Aveda's rental operations include the rental of tanks, mats, pickers, light towers and other equipment necessary for oilfield operations.

Aveda was incorporated in 1994 as a private company to serve the oil and gas industry. In the spring of 2006 the Company went public on the TSX Venture Exchange. Aveda has major operations in Calgary, AB, Slave Lake, AB, Leduc, AB, Sylvan Lake, AB Mineral Wells, TX, Pleasanton, TX, Midland, TX and New Columbia, PA. Aveda is publicly traded on the TSX Venture Exchange under the symbol AVE. For more information on Aveda please visit www.avedaenergy.com.

This News Release contains certain forward-looking statements and forward-looking information (collectively referred to herein as "forward-looking statements") within the meaning of applicable Canadian securities laws. All statements other than statements of present or historical fact are forward-looking statements. Forward-looking statements are often, but not always, identified by the use of words such as "anticipate", "achieve", "could", "believe", "plan", "intend", "objective", "continuous", "ongoing", "estimate", "outlook", "expect", "may", "will", "project", "should" or similar words, including negatives thereof, suggesting future outcomes. In particular, this News Release contains forward-looking statements relating to: demand for the Company's services and general industry activity level; the Company's growth opportunities; and expectation to maintain revenue and equipment utilization. Aveda believes the expectations reflected in such forward-looking statements are reasonable as of the date hereof but no assurance can be given that these expectations will prove to be correct and such forward-looking statements should not be unduly relied upon.

Various material factors and assumptions are typically applied in drawing conclusions or making the forecasts or projections set out in forward-looking statements. Those material factors and assumptions are based on information currently available to Aveda, including information obtained from third party industry analysts and other third party sources. In some instances, material assumptions and material factors are presented elsewhere in this News Release in connection with the forward-looking statements. Readers are cautioned that the following list of material factors and assumptions is not exhaustive. Specific material factors and assumptions include, but are not limited to:


--  the performance of Aveda's businesses, including current business and
    economic trends;
    
--  oil and natural gas commodity prices and production levels;
    
--  the effect of the rebranding on Aveda's businesses;
    
--  capital expenditure programs and other expenditures by Aveda and its
    customers:
    
--  the ability of Aveda to retain and hire qualified personnel;
    
--  the ability of Aveda to obtain parts, consumables, equipment,
    technology, and supplies in a timely manner to carry out its activities;
    
--  the ability of Aveda to maintain good working relationships with key
    suppliers;
    
--  the ability of Aveda to market its services successfully to existing and
    new customers;
    
--  the ability of Aveda to obtain timely financing on acceptable terms;
    
--  currency exchange and interest rates;
    
--  risks associated with foreign operations;
    
--  changes under governmental regulatory regimes and tax, environmental and
    other laws in Canada and the United States; and
    
--  a stable competitive environment. 

Forward-looking statements are not a guarantee of future performance and involve a number of risks and uncertainties, some of which are described herein. Such forward-looking statements necessarily involve known and unknown risks and uncertainties, which may cause Aveda's actual performance and financial results in future periods to differ materially from any projections of future performance or results expressed or implied by such forward-looking statements. These risks and uncertainties include, but are not limited to, the risks identified in Aveda's annual information form and management discussion and analysis for the year ended December 31, 2011 (the "MD&A"). Any forward-looking statements are made as of the date hereof and, except as required by law, Aveda assumes no obligation to publicly update or revise such statements to reflect new information, subsequent or otherwise.

This News Release contains the terms EBITDA and Adjusted EBITDA which are defined in the MD&A. EBITDA and Adjusted EBITDA as presented do not have any standardized meaning prescribed by international financial reporting standards (IFRS) and therefore may not be comparable with the calculation of similar measures for other entities. Management uses Adjusted EBITDA to analyze the operating performance of the business. Adjusted EBITDA as presented is not intended to represent cash provided by operating activities, net earnings or other measures of financial performance calculated in accordance with IFRS.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

@ThingsExpo Stories
What are the successful IoT innovations from emerging markets? What are the unique challenges and opportunities from these markets? How did the constraints in connectivity among others lead to groundbreaking insights? In her session at @ThingsExpo, Carmen Feliciano, a Principal at AMDG, will answer all these questions and share how you can apply IoT best practices and frameworks from the emerging markets to your own business.
Ask someone to architect an Internet of Things (IoT) solution and you are guaranteed to see a reference to the cloud. This would lead you to believe that IoT requires the cloud to exist. However, there are many IoT use cases where the cloud is not feasible or desirable. In his session at @ThingsExpo, Dave McCarthy, Director of Products at Bsquare Corporation, will discuss the strategies that exist to extend intelligence directly to IoT devices and sensors, freeing them from the constraints of ...
You think you know what’s in your data. But do you? Most organizations are now aware of the business intelligence represented by their data. Data science stands to take this to a level you never thought of – literally. The techniques of data science, when used with the capabilities of Big Data technologies, can make connections you had not yet imagined, helping you discover new insights and ask new questions of your data. In his session at @ThingsExpo, Sarbjit Sarkaria, data science team lead ...
Extracting business value from Internet of Things (IoT) data doesn’t happen overnight. There are several requirements that must be satisfied, including IoT device enablement, data analysis, real-time detection of complex events and automated orchestration of actions. Unfortunately, too many companies fall short in achieving their business goals by implementing incomplete solutions or not focusing on tangible use cases. In his general session at @ThingsExpo, Dave McCarthy, Director of Products...
Traditional IT, great for stable systems of record, is struggling to cope with newer, agile systems of engagement requirements coming straight from the business. In his session at 18th Cloud Expo, William Morrish, General Manager of Product Sales at Interoute, outlined ways of exploiting new architectures to enable both systems and building them to support your existing platforms, with an eye for the future. Technologies such as Docker and the hyper-convergence of computing, networking and sto...
WebRTC is bringing significant change to the communications landscape that will bridge the worlds of web and telephony, making the Internet the new standard for communications. Cloud9 took the road less traveled and used WebRTC to create a downloadable enterprise-grade communications platform that is changing the communication dynamic in the financial sector. In his session at @ThingsExpo, Leo Papadopoulos, CTO of Cloud9, discussed the importance of WebRTC and how it enables companies to focus...
With an estimated 50 billion devices connected to the Internet by 2020, several industries will begin to expand their capabilities for retaining end point data at the edge to better utilize the range of data types and sheer volume of M2M data generated by the Internet of Things. In his session at @ThingsExpo, Don DeLoach, CEO and President of Infobright, discussed the infrastructures businesses will need to implement to handle this explosion of data by providing specific use cases for filterin...
IoT generates lots of temporal data. But how do you unlock its value? You need to discover patterns that are repeatable in vast quantities of data, understand their meaning, and implement scalable monitoring across multiple data streams in order to monetize the discoveries and insights. Motif discovery and deep learning platforms are emerging to visualize sensor data, to search for patterns and to build application that can monitor real time streams efficiently. In his session at @ThingsExpo, ...
Early adopters of IoT viewed it mainly as a different term for machine-to-machine connectivity or M2M. This is understandable since a prerequisite for any IoT solution is the ability to collect and aggregate device data, which is most often presented in a dashboard. The problem is that viewing data in a dashboard requires a human to interpret the results and take manual action, which doesn’t scale to the needs of IoT.
Internet of @ThingsExpo has announced today that Chris Matthieu has been named tech chair of Internet of @ThingsExpo 2016 Silicon Valley. The 6thInternet of @ThingsExpo will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
SYS-CON Events announced today the Enterprise IoT Bootcamp, being held November 1-2, 2016, in conjunction with 19th Cloud Expo | @ThingsExpo at the Santa Clara Convention Center in Santa Clara, CA. Combined with real-world scenarios and use cases, the Enterprise IoT Bootcamp is not just based on presentations but with hands-on demos and detailed walkthroughs. We will introduce you to a variety of real world use cases prototyped using Arduino, Raspberry Pi, BeagleBone, Spark, and Intel Edison. Y...
Much of IT terminology is often misused and misapplied. Modernization and transformation are two such terms. They are often used interchangeably even though they mean different things and have very different connotations. Indeed, it is somewhat safe to assume that in IT any transformative effort is likely to also have a modernizing effect, and thus, we can see these as levels of improvement efforts. However, many businesses are being led to believe if they don’t transform now they risk becoming ...
CenturyLink has announced that application server solutions from GENBAND are now available as part of CenturyLink’s Networx contracts. The General Services Administration (GSA)’s Networx program includes the largest telecommunications contract vehicles ever awarded by the federal government. CenturyLink recently secured an extension through spring 2020 of its offerings available to federal government agencies via GSA’s Networx Universal and Enterprise contracts. GENBAND’s EXPERiUS™ Application...
What does it look like when you have access to cloud infrastructure and platform under the same roof? Let’s talk about the different layers of Technology as a Service: who cares, what runs where, and how does it all fit together. In his session at 18th Cloud Expo, Phil Jackson, Lead Technology Evangelist at SoftLayer, an IBM company, spoke about the picture being painted by IBM Cloud and how the tools being crafted can help fill the gaps in your IT infrastructure.
SYS-CON Events announced today that LeaseWeb USA, a cloud Infrastructure-as-a-Service (IaaS) provider, will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. LeaseWeb is one of the world's largest hosting brands. The company helps customers define, develop and deploy IT infrastructure tailored to their exact business needs, by combining various kinds cloud solutions.
The best-practices for building IoT applications with Go Code that attendees can use to build their own IoT applications. In his session at @ThingsExpo, Indraneel Mitra, Senior Solutions Architect & Technology Evangelist at Cognizant, provided valuable information and resources for both novice and experienced developers on how to get started with IoT and Golang in a day. He also provided information on how to use Intel Arduino Kit, Go Robotics API and AWS IoT stack to build an application tha...
Whether your IoT service is connecting cars, homes, appliances, wearable, cameras or other devices, one question hangs in the balance – how do you actually make money from this service? The ability to turn your IoT service into profit requires the ability to create a monetization strategy that is flexible, scalable and working for you in real-time. It must be a transparent, smoothly implemented strategy that all stakeholders – from customers to the board – will be able to understand and comprehe...
It’s 2016: buildings are smart, connected and the IoT is fundamentally altering how control and operating systems work and speak to each other. Platforms across the enterprise are networked via inexpensive sensors to collect massive amounts of data for analytics, information management, and insights that can be used to continuously improve operations. In his session at @ThingsExpo, Brian Chemel, Co-Founder and CTO of Digital Lumens, will explore: The benefits sensor-networked systems bring to ...
"Tintri was started in 2008 with the express purpose of building a storage appliance that is ideal for virtualized environments. We support a lot of different hypervisor platforms from VMware to OpenStack to Hyper-V," explained Dan Florea, Director of Product Management at Tintri, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
Identity is in everything and customers are looking to their providers to ensure the security of their identities, transactions and data. With the increased reliance on cloud-based services, service providers must build security and trust into their offerings, adding value to customers and improving the user experience. Making identity, security and privacy easy for customers provides a unique advantage over the competition.